The company exhibits extreme revenue volatility, evidenced by a 10.5% year-over-year decline in 2025Q4, while operating margins remain deeply negative at -61.7% due to an inflexible SG&A cost structure.
| Sales/Revenue | 8.94M | 8.15M | 5.71M | 6.33M | 5.34M | 9.06M | 8.7M | 6.29M | 5.82M |
| Revenue Growth % | 9.65% | 42.73% | -9.76% | 18.51% | -41.06% | 4.17% | 38.43% | 8.05% | - |
| Cost of Goods Sold | 3.42M | 3.27M | 1.91M | 2.27M | 2.16M | 2.43M | 2.32M | 1.83M | 1.84M |
| COGS % of Revenue | 38.3% | 40.05% | 33.42% | 35.94% | 40.34% | 26.81% | 26.67% | 29.18% | 31.71% |
| Gross Profit | 5.52M | 4.89M | 3.8M | 4.06M | 3.19M | 6.63M | 6.38M | 4.45M | 3.97M |
| Gross Margin % | 61.7% | 59.95% | 66.58% | 64.06% | 59.66% | 73.19% | 73.33% | 70.82% | 68.29% |
| Gross Profit Growth % | 12.86% | 28.51% | -6.22% | 27.26% | -51.96% | 3.97% | 43.35% | 12.05% | - |
| Operating Expenses | 9.67M | 12.29M | 10.8M | 11.22M | 4.66M | 5.34M | 3.74M | 2.79M | 2.48M |
| OpEx % of Revenue | 108.22% | 150.79% | 189.05% | 177.25% | 87.24% | 58.89% | 42.95% | 44.33% | 42.61% |
| Selling, General & Admin | 9.6M | 12.29M | 10.8M | 11.22M | 4.66M | 5.34M | 3.74M | 2.79M | 2.48M |
| SG&A % of Revenue | 107.33% | 150.79% | 189.05% | 177.25% | 87.24% | 58.89% | 42.95% | 44.33% | 42.61% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 79.3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -4.16M | -7.41M | -7M | -7.17M | -1.47M | 1.3M | 2.64M | 1.66M | 1.49M |
| Operating Margin % | -46.52% | -90.85% | -122.48% | -113.18% | -27.58% | 14.29% | 30.39% | 26.48% | 25.68% |
| Operating Income Growth % | 43.86% | -5.87% | 2.35% | -386.29% | -213.73% | -50.99% | 58.81% | 11.46% | - |
| EBITDA | -3.75M | -6.98M | -6.59M | -6.91M | -1.25M | 1.38M | 2.74M | 1.75M | 1.58M |
| EBITDA Margin % | -41.93% | -85.62% | -115.35% | -109.17% | -23.45% | 15.26% | 31.44% | 27.79% | 27.13% |
| EBITDA Growth % | 46.31% | -5.95% | 4.66% | -451.81% | -190.55% | -49.44% | 56.59% | 10.67% | - |
| D&A (Non-Cash Add-back) | 409.9K | 425.78K | 407.01K | 253.87K | 220.93K | 87.59K | 91.81K | 82.22K | 84.91K |
| EBIT | -2.5M | -6.89M | -6.77M | -6.32M | -1.39M | 1.41M | 2.72M | 1.72M | 1.5M |
| Net Interest Income | 15.85K | 4.88K | 43.93K | 26.46K | 2.48K | 27.71K | 75.07K | 46.99K | 0 |
| Interest Income | 37.34K | 22.73K | 53.09K | 26.46K | 9.54K | 35.29K | 79.92K | 51.88K | 6.87K |
| Interest Expense | 21.49K | 17.86K | 9.16K | 0 | 7.06K | 7.59K | 4.85K | 4.89K | 0 |
| Other Income/Expense | 1.64M | 500.15K | 216.06K | 845.6K | 81.92K | 113.56K | 79.92K | 51.88K | 6.87K |
| Pretax Income | -2.52M | -6.91M | -6.78M | -6.32M | -1.39M | 1.41M | 2.72M | 1.72M | 1.5M |
| Pretax Margin % | -28.22% | -84.71% | -118.69% | -99.83% | -26.05% | 15.55% | 31.3% | 27.31% | 25.79% |
| Income Tax | 3.38K | -335.83K | 289.46K | -191.03K | -307.17K | 397.55K | 668.8K | 646.88K | 510.12K |
| Effective Tax Rate % | -0.13% | 4.86% | -4.27% | 3.02% | 22.07% | 28.21% | 24.56% | 37.69% | 34% |
| Net Income | -2.43M | -5.99M | -6.66M | -5.96M | -1.08M | 1.01M | 2.05M | 1.07M | 990.23K |
| Net Margin % | -27.17% | -73.47% | -116.58% | -94.2% | -20.3% | 11.16% | 23.62% | 17.02% | 17.02% |
| Net Income Growth % | 59.45% | 10.05% | -11.67% | -449.98% | -207.19% | -50.77% | 92.1% | 8.02% | - |
| Net Income (Continuing) | -2.53M | -6.57M | -7.07M | -6.13M | -1.08M | 1.01M | 2.05M | 1.07M | 990.23K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.61M | 5.71M | 1.79M | 2.18M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.56 | -7.52 | -9.28 | -8.64 | -1.60 | 1.76 | 3.68 | 1.92 | 1.76 |
| EPS Growth % | 65.96% | 18.97% | -7.41% | -440% | -190.91% | -52.17% | 91.67% | 9.09% | - |
| EPS (Basic) | -2.56 | -7.52 | -9.28 | -8.64 | -1.60 | 1.76 | 3.68 | 1.92 | 1.76 |
| Diluted Shares Outstanding | 967.9K | 789.87K | 728.48K | 688.14K | 650.8K | 550.03K | 550.03K | 543K | 550.03K |
| Basic Shares Outstanding | 967.9K | 789.87K | 728.48K | 688.14K | 650.8K | 550.03K | 550.03K | 543K | 550.03K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Geopolitical and Enrollment Concentration
As reported in recent financial filings, EEIQ's revenue trajectory remains highly inconsistent, with a 10.5% year-over-year decline in 2025Q4 following a 74.1% surge in 2024Q4, highlighting the company's extreme sensitivity to seasonal academic cycles and the inherent unpredictability of international student enrollment pipelines.
The erratic revenue growth suggests that the company struggles to maintain a consistent student acquisition funnel, likely exacerbated by external geopolitical factors affecting visa approvals. Investors should monitor whether these fluctuations represent structural instability or merely the timing mismatch of student intake cycles.
Based on the provided income statement data, EEIQ maintains a relatively robust gross margin of 64.4% as of 2025Q4, yet this efficiency is entirely offset by an operating margin of -61.7%, indicating that the company's current scale is insufficient to absorb its fixed administrative cost base.
While the high gross margin suggests the core service model has potential, the persistent operating losses imply that the company is trapped in a pre-scale phase. The inability to convert high gross profitability into positive operating income warrants further investigation into the necessity of current SG&A expenditures.
According to historical income statement figures, EEIQ has failed to demonstrate positive operating leverage, as SG&A expenses frequently exceed gross profit, resulting in a persistent operating margin deficit that has reached as low as -171.6% in previous periods, signaling a lack of scalable operational efficiency.
The company's cost structure appears heavily weighted toward fixed overheads that do not scale down during periods of lower enrollment. This lack of operating leverage suggests that management has yet to find a path to profitability without a significant and sustained increase in student density.
As indicated by the company's financial statements, the primary cost driver is a rigid SG&A structure that consistently outweighs gross profit, suggesting that the firm's localized US-based support model carries a high fixed-cost burden that is difficult to adjust in response to fluctuating student enrollment numbers.
The reliance on physical infrastructure and localized staff creates a high-touch environment that is costly to maintain. Unless management can significantly optimize these administrative expenses or increase student throughput, the current cost structure appears to be a structural barrier to achieving sustainable net income.
Based on the reported figures, short-sellers may focus on the company's persistent negative net margins and the potential for further margin compression if regional university partnerships face increased regulatory scrutiny or if competition from in-house university programs erodes the company's value proposition for international students.
The fundamental risk is that the company's niche model may be structurally unviable at its current scale. Investors should monitor whether the company's reliance on a specific demographic and geographic footprint leaves it too vulnerable to external shocks that are entirely outside of management's control.
Quick answers to the most common questions about buying EEIQ stock.
For fiscal year 2025, Elite Education Group International Limited (EEIQ) reported total revenue of $8.9M. This represents a 53.7% increase compared to $5.8M in 2017.
Elite Education Group International Limited (EEIQ) reported a net loss of $2.4M for the fiscal year ending 2025.
Elite Education Group International Limited (EEIQ) reported an operating income of $-4.2M, resulting in an operating profit margin of -46.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Elite Education Group International Limited (EEIQ) generated $5.5M in gross profit for the year, representing a gross profit margin of 61.7%. This demonstrates the company's core pricing power and production efficiency.